HRPT greenshoe exercised in full, lifting convertible preferreds issue to $379.5 million

By Jennifer Chiou

New York, Oct. 23 - HRPT Properties Trust's 1.98 million share greenshoe was fully exercised, augmenting its issue of series D convertible preferred stock to $379.5 million, according to an 8-K filing with the Securities and Exchange Commission.

After the close on Oct. 5, the company priced an upsized $330 million of series D convertible preferred stock within talk, at a dividend of 6.5% and an initial conversion premium of 10.9%.

As already announced, the 13.2 million preferred shares were offered at par of $25.00 apiece.

The size of the deal was originally $250 million, or 10 million preferred shares. The over-allotment option was set at a further $49.5 million, or 1.98 million preferred shares.

Merrill Lynch and Banc of America Securities were the bookrunners of the registered deal.

The convertibles will be non-callable for the first five years, with a provisional call at 100% of the conversion price.

The preferreds have dividend protection for quarterly cash payouts above 21 cents per common share. They also have takeover protection through a conversion rate adjustment.

The company said that the estimated net proceeds were $368.3 million.

HRPT, a Newton, Mass.-based real estate investment trust focusing on office and industrial real estate, said it will use the proceeds of the deal to reduce its outstanding revolving debt.

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